Operational and Strategic Highlights:
- O2Micro reports non-GAAP net loss per fully diluted ADS of
$0.08 and GAAP net loss per fully diluted ADS of $0.09.
- O2Micro continues to lower operating expenses. Company lowers
first quarter 2016 operating expenses by fifteen percent on a
year-over-year basis
- Revenue from battery management products now anticipated to
reach 20-25% of projected 2016 revenue, expected to become second
largest product line in 2016.
- Lower operating expense levels reflect cash breakeven level
estimate of $16.5-$17.5 million and new profitability breakeven
level estimate of $18.5-$19.5 million on a quarterly basis
- Expects revenue to be up flat to up 8 percent sequentially in
the second quarter of fiscal year 2016.
O2Micro® International Limited (NASDAQ:OIIM), a global leader in
the design, development and marketing of high-performance
integrated circuits and solutions, reported its financial results
today for the first quarter of 2016, ending March 31, 2016.
Financial Highlights for the First Quarter ending March
31, 2016:
O2Micro International Limited reported Q1 2016 revenue of $13.0
million. Revenue was down 2.9% sequentially and down 0.9% from the
comparable year-ago quarter. The gross margin in the first quarter
of 2016 was 48.8%. The gross margin was down from 50.4% in the
prior quarter and down from 50.0% in the first quarter of 2015. The
gross margin remains in our target range and varies primarily with
revenue level and product mix. During the first quarter of 2016,
the company recorded total GAAP operating expenses of $8.6 million,
compared to $11.3 million in the fourth quarter of 2015 and $10.1
million in the year-ago Q1 period. The respective GAAP operating
margins for the first quarter of 2016, the fourth quarter of 2015,
and first quarter of 2015 were (17.6%), (34.1%), and (27.3%).
GAAP net loss was $2.4 million in Q1 2016. This compares to a
GAAP net loss of $12.8 million in the fourth quarter of 2015 and a
GAAP net loss of $3.2 million in Q1 2015. GAAP net loss per fully
diluted ADS was $0.09 in Q1 2016. This compares to a GAAP net loss
per fully diluted ADS of $0.50 in Q4 2015 and a GAAP net loss per
fully diluted ADS of $0.12 in Q1 2015.
Supplementary Data:
The company ended the first quarter of 2016 with $46.5 million
in unrestricted cash and short-term investments or $1.81 per
outstanding ADS. The accounts receivable balance was $5.3 million
and represented 37 days sales outstanding at the end of Q1 2016.
Inventory was $9.3 million or 129 days and turned over 2.8 times
during Q1 2016. As of March 31, 2016, the company had $61.0 million
in working capital and the book value was $81.3 million, or $3.16
per outstanding ADS.
As of March 31, 2016, O2Micro International Limited counted 348
employees, including 187 engineers.
Management Commentary:
“Our first quarter 2016 financial results were within the range
of the guidance that we provided in January,” said Sterling
Du, O2Micro’s Chairman and CEO. “Our second quarter revenue
guidance reflects ongoing product ramps in our high potential
growth drivers including backlighting, battery management products
and new products for the tablet and smartphone markets. We
believe our solutions for these product segments will contribute to
top-line growth in upcoming quarters and lead O2Micro back to
profitability in the near future.”
Conference Call: O2Micro will hold its
first quarter conference call today, May 4, 2016, at 6:00 a.m. PDT,
9:00 a.m. EDT. You may participate using the following dial-in
information.
| |
|
|
| In the US and CANADA: |
|
866-598-9340, pass code #3244390 |
| INTERNATIONAL participants: |
|
719-325-2484, pass code #3244390 |
| |
|
|
A replay of the call will be available by phone until May 11th
by visiting the following URL and providing the following
conference code:
https://jsp.premiereglobal.com/webrsvp Conference code:
3244390.
A live webcast will also be available on the company website at
www.o2micro.com, and an online replay will be available for one
week.
About O2Micro
Founded in April 1995, O2Micro develops and markets innovative
power management components for the Computer, Consumer, Industrial,
Automotive and Communications markets. Products include LED General
Lighting, Backlighting, Battery Management and Power
Management.
O2Micro International maintains an extensive portfolio of
intellectual property with 28,852 patent claims granted, and over
29,000 more pending. The company maintains offices worldwide.
Additional company and product information can be found on the
company website at www.o2micro.com.
O2Micro, the O2Micro logo, and combinations thereof are
registered trademarks of O2Micro. All other trademarks or
registered trademarks are the property of their respective
owners.
Statements made in this release that are not
historical, including statements regarding O2Micro or its
management's intentions, hopes, beliefs, expectations,
representations, projections, plans or predictions of the future,
are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other Federal
Securities Laws. Such statements involve risks, speculation and
uncertainties that may cause actual results to differ materially
from those set forth in these statements or from management’s
current views and expectations. Risks and uncertainties in this
release may include, without limitation, any one or combination of
the following: the effect of competitive and economic
factors; real property value fluctuations and market demand; legal
changes in any relevant rules and regulations pertaining to
O2Micro’s business; changes in technology and industry standards,
and O2Micro’s reaction to those factors; consumer and business
buying decisions with respect to our customers’ products
incorporating O2Micro’s products; continued competitive pressures
in the marketplace; the ability of O2Micro to deliver to the
marketplace, and stimulate customer demand therein, for new
products and technological innovations on a timely basis; the
effect that product introductions and transitions, changes in
product pricing or mix, and/or increases in component costs could
have on O2Micro’s gross margins; the inventory risk associated with
O2Micro’s need to order, or commit to order, product components and
product capacity in advance of forecast customer orders; the
continued availability of acceptable terms of certain components
and services essential to O2Micro’s business which are currently
obtained by the company from sole or limited sources; the effect
that O2Micro’s dependency on manufacturing and logistics services
provided by third parties may have on the quality, quantity,
availability or cost of products manufactured or services rendered;
risks associated with O2Mcro’s international operations; the
potential impact of a finding that O2Micro has infringed on the
intellectual property rights of others, or that any third party may
have infringed on O2Micro’s intellectual property that may
negatively affect O2Micro’s business; O2Micro’s legal
classifications with governmental and regulatory agencies;
O2Micro’s dependency on the performance of distributors, carriers,
independent sales representatives, and other resellers of O2Micro’s
products; the effect that product and service quality problems
could have on O2Micro’s sales ability and operating profits; the
ability of O2Micro to deliver its products in a timely fashion to
its customers, and the possible negative ramifications if such is
not possible; the continued service and availability of key
executives and employees; war, terrorism, public health issues,
natural disasters, and other circumstances that could disrupt
supply, delivery, or demand of products; and unfavorable results of
other legal proceedings.
Actual results may differ materially due to numerous risk
factors. Such risk factors are more fully enumerated in O2Micro’s
20-F Annual Filings, Annual Report(s), 6-K’s, the Form F-1 filed in
connection with the company’s initial public offering in August
2000, information posted on our website at www.o2micro.com, and
other documents filed with the SEC, NASDAQ or any other public
agency from time to time. The statements herein are based on dated
information on the dates mentioned herein, which is subject to
change. O2Micro assumes no obligation to update or revise the
information provided on today, or any other forward-looking
information, whether as a result of new information, future events
or any other information that may arise. This information only
speaks to the respective dates mentioned in said information.
| |
| O2MICRO INTERNATIONAL LIMITED AND
SUBSIDIARIES |
| |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (UNAUDITED) |
| (In Thousand U.S. Dollars, Except Per Share
Amounts) |
| |
|
|
| |
|
Three Months Ended |
| |
|
March 31, |
| |
|
|
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
|
| NET SALES |
|
|
$ |
12,985 |
|
$ |
13,101 |
|
| |
|
|
|
|
| COST OF SALES |
|
|
|
6,647 |
|
|
6,546 |
|
| |
|
|
|
|
|
|
|
|
| GROSS PROFIT |
|
|
|
6,338 |
|
|
6,555 |
|
| |
|
|
|
|
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
| Research and development
(1) |
|
|
|
3,792 |
|
|
4,460 |
|
| Selling, general and
administrative (1) |
|
|
|
4,854 |
|
|
5,671 |
|
| Litigation Income |
|
|
|
(23 |
) |
|
- |
|
| Total Operating
Expenses |
|
|
|
8,623 |
|
|
10,131 |
|
| |
|
|
|
|
|
|
|
|
| LOSS FROM
OPERATIONS |
|
|
|
(2,285 |
) |
|
(3,576 |
) |
| |
|
|
|
|
|
|
|
|
| NON-OPERATING
INCOME |
|
|
|
|
|
|
|
|
| Interest income |
|
|
|
77 |
|
|
237 |
|
| Foreign exchange (loss)
gain – net |
|
|
|
(204 |
) |
|
9 |
|
| Gain on sale of real
estate |
|
|
|
- |
|
|
298 |
|
| Other – net |
|
|
|
249 |
|
|
74 |
|
| Total Non-operating
Income |
|
|
|
122 |
|
|
618 |
|
| |
|
|
|
|
|
|
|
|
| LOSS BEFORE INCOME
TAX |
|
|
|
(2,163 |
) |
|
(2,958 |
) |
| |
|
|
|
|
| INCOME TAX EXPENSE |
|
|
|
201 |
|
|
241 |
|
| |
|
|
|
|
|
|
|
|
| NET LOSS |
|
|
|
(2,364 |
) |
|
(3,199 |
) |
| |
|
|
|
|
|
|
|
|
| OTHER COMPREHENSIVE
INCOME |
|
|
|
|
|
|
|
|
| Foreign currency
translation adjustments |
|
|
|
434 |
|
|
(47 |
) |
| Unrealized gain on
available-for-sale securities |
|
|
|
- |
|
|
- |
|
| Unrealized pension
gain |
|
|
|
- |
|
|
2 |
|
| Total Other
Comprehensive Gain (Loss) |
|
|
|
434 |
|
|
(45 |
) |
| |
|
|
|
|
|
|
|
|
| COMPREHENSIVE LOSS |
|
|
$ |
(1,930 |
) |
$ |
(3,244 |
) |
| |
|
|
|
|
|
|
|
|
| BASIC AND DILUTED LOSS
PER ADS |
|
|
$ |
(0.09 |
) |
$ |
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| ADS UNITS USED IN LOSS
PER ADS CALCULATION: |
|
|
|
|
|
|
|
|
| Basic (in
thousands) |
|
|
|
25,699 |
|
|
26,480 |
|
| Diluted (in
thousands) |
|
|
|
25,699 |
|
|
26,480 |
|
| |
|
|
|
|
|
|
|
|
| (1) INCLUDES
STOCK-BASED COMPENSATION CHARGE AS FOLLOWS: |
|
|
|
|
|
|
|
|
| Research and
development |
|
|
$ |
65 |
|
$ |
94 |
|
| Selling, general and
administrative |
|
|
$ |
373 |
|
$ |
457 |
|
| |
|
|
|
|
| |
| O2MICRO INTERNATIONAL LIMITED AND
SUBSIDIARIES |
| |
| CONSOLIDATED BALANCE SHEETS |
| (In Thousand U.S. Dollars, Except Share
Amounts) |
| |
|
|
| |
March 31, |
|
December 31, |
| |
|
2016 |
|
|
|
2015 |
|
|
ASSETS |
(Unaudited) |
(Audited) |
| |
|
|
| CURRENT ASSETS |
|
|
| Cash and cash
equivalents |
$ |
35,924 |
|
|
$ |
41,199 |
|
| Restricted cash |
|
32 |
|
|
|
31 |
|
| Short-term
investments |
|
10,580 |
|
|
|
11,233 |
|
| Accounts receivable –
net |
|
5,337 |
|
|
|
5,197 |
|
| Inventories |
|
9,328 |
|
|
|
9,662 |
|
| Prepaid expenses and other
current assets |
|
1,388 |
|
|
|
1,126 |
|
| Assets held for sale |
|
6,924 |
|
|
|
1,956 |
|
| Total Current Assets |
|
69,513 |
|
|
|
70,404 |
|
| |
|
|
| LONG-TERM INVESTMENTS |
|
4,331 |
|
|
|
9,304 |
|
| |
|
|
| PROPERTY AND EQUIPMENT –
NET |
|
14,077 |
|
|
|
14,011 |
|
| |
|
|
| OTHER ASSETS |
|
2,375 |
|
|
|
2,489 |
|
| |
|
|
|
|
|
|
|
| TOTAL ASSETS |
$ |
90,296 |
|
|
$ |
96,208 |
|
| |
|
|
|
|
|
|
|
| LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
| |
|
|
| CURRENT LIABILITIES |
|
|
| Notes and accounts
payable |
$ |
2,951 |
|
|
$ |
3,333 |
|
| Income tax payable |
|
469 |
|
|
|
2,245 |
|
| Deferred tax
liabilities |
|
2,278 |
|
|
|
2,206 |
|
| Accrued expenses and other
current liabilities |
|
2,859 |
|
|
|
4,896 |
|
| Total Current
Liabilities |
|
8,557 |
|
|
|
12,680 |
|
| |
|
|
| OTHER LONG-TERM
LIABILITIES |
|
|
| Accrued pension
liabilities |
|
275 |
|
|
|
272 |
|
| Other liabilities |
|
149 |
|
|
|
139 |
|
| Total Other Long-Term
Liabilities |
|
424 |
|
|
|
411 |
|
| |
|
|
| Total Liabilities |
|
8,981 |
|
|
|
13,091 |
|
| |
|
|
|
|
|
|
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
| |
|
|
| SHAREHOLDERS’ EQUITY |
|
|
| Preference shares at
$0.00002 par value per share |
|
|
| Authorized – 250,000,000
shares |
|
- |
|
|
|
- |
|
| Ordinary shares at
$0.00002 par value per share |
|
|
| Authorized – 4,750,000,000
shares |
|
|
| Issued – 1,669,036,600 and
1,660,786,600 shares as of March 31, 2016 and December 31,
2015,respectivelyOutstanding –1,286,197,700 and 1,278,661,400
shares as of March 31, 2016 and December 31, 2015,
respectively |
|
33 |
|
|
|
33 |
|
| Additional paid-in
capital |
|
141,646 |
|
|
|
141,886 |
|
| Accumulated deficits |
|
(40,750 |
) |
|
|
(38,386 |
) |
| Accumulated other
comprehensive income |
|
5,258 |
|
|
|
4,824 |
|
| Treasury stock –
382,838,900 and 382,125,200 shares as of March 31, 2016 and
December 31, 2015, respectively |
|
(24,872 |
) |
|
|
(25,240 |
) |
| Total Shareholders’
Equity |
|
81,315 |
|
|
|
83,117 |
|
| |
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
$ |
90,296 |
|
|
$ |
96,208 |
|
| |
|
|
|
|
|
|
|
Contact Information:
Scott L. Anderson
Director of Investor Relations, O2Micro
Phone: 408.987.5920, x8888
Email: scott.anderson@o2micro.com
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